Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
The key point seems to be:

Insolvency for central banks therefore would mean failure to pay obligations as they fall due (equitable insolvency) rather than liabilities exceeding assets (balance sheet insolvency).

As long as central banks don't have significant foreign exchange-denominated liabilities or index-linked liabilities, it will always be possible for the central bank to ensure its solvency though monetary issuance (seigniorage).

...which the ECB won't do, leaving recapitalisation by the Treasuries of the 15 Eurozone governments, which is tricky. Did I miss something?


*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Thu Jun 16th, 2011 at 05:54:15 AM EST
[ Parent ]

Others have rated this comment as follows:

Migeru 4

Display:

Top Diaries

Smudges

by Oui - Sep 23
9 comments

2034

by Frank Schnittger - Sep 10
5 comments

Faux Accompli

by Cat - Sep 14
14 comments

Civic Self Defense Resources

by gmoke - Sep 19
1 comment

Recent Diaries

Smudges

by Oui - Sep 23
9 comments

Civic Self Defense Resources

by gmoke - Sep 19
1 comment

Faux Accompli

by Cat - Sep 14
14 comments

2034

by Frank Schnittger - Sep 10
5 comments

The Focus Group

by THE Twank - Aug 31
10 comments

Labour grows up?

by Frank Schnittger - Aug 27
57 comments

Exhibit 1

by Cat - Aug 22
22 comments

EU Position Papers

by Cat - Aug 22
25 comments

PACER

by Cat - Aug 18
5 comments

More Diaries...

Occasional Series